Tartaglione Questions Delaware Subsidiary of PA Lottery Bidder

OnDecember 5, 2012

HARRISBURG, Dec. 5, 2012 – State Sen. Christine M. Tartaglione is asking Corbett administration officials why an international gambling company created a Delaware corporation to submit its bid to take over the Pennsylvania Lottery.

According to Delaware’s Department of State, Camelot Global Services PA LLC was created Nov. 13 with its headquarters located at 1209 North Orange St. in Wilmington, the same address as thousands of other large companies.

In a letter to Revenue Secretary Dan Meuser, Tartaglione expressed concern that, like many others, the Delaware entity created by Camelot could be a “shell” company used as part of a tax strategy.

“More than a year ago, in response to questions about the notorious Delaware Loophole, you assured my colleagues and I that the Department of Revenue was doing everything it could to ensure that companies doing business in Pennsylvania are paying their fair share of taxes,” Tartaglione wrote. “The building at 1209 N. Orange Street in Wilmington is home to more than 6,500 companies, yet has only has 35 parking spaces.”

Tartaglione has been the legislature’s chief proponent of closing the “Delaware Loophole,” a tax avoidance strategy uncovered by several state lawsuits against large corporations. The loophole has proven so expansive that the governments of Switzerland and Luxembourg – both targets of U.S. tax scrutiny – have complained.

Tartaglione is the prime sponsor of Senate Bill 679, which would require “combined reporting” for businesses in Pennsylvania, closing the loophole.

In her letter to Meuser, Tartaglione said she was seeking the answers to three questions as the administration goes over Camelot’s proposal:

Why did Camelot Global Services create a new Delaware subsidiary to submit its bid for Pennsylvania’s lottery system?

What is the department’s estimate of the corporate taxes that will be paid by Camelot Global Services PA LLC?

How many people are currently employed by Camelot Global Services PA LLC and how many of them work in the corporate headquarters at 1209 N. Orange St., Wilmington, Delaware?